PAYE Query

[grahamo]

Hi,
Got this from revenue.ie re: cut off points:

Married Couple one spouse with Income

2007 ​

43,000 @ 20%​

Balance @ 41%​

2008​

44,400 @ 20%​

Balance @ 41%​

Am I right in saying that all income above 44,400 euros is taxed at 41%. The reason I ask is I earn 48,000 euro a year, Married, 1 income, kids, mortgage etc. and I'm paying tax at 20%. I don't want to end up owing the taxman money.
Would I be right in thinking pension contributions are keeping me in the 20% tax band as there not treated as taxable pay? Is the cut off point net or gross pay?

Cheers

 

[Satanta]

Would I be right in thinking pension contributions are keeping me in the 20% tax band as there not treated as taxable pay?

This is possible.

Is the cut off point net or gross pay?

It's based on your Gross Taxable Salary, which includes reductions for pension contributions.

Do your pension contributions bring your Gross Taxable Salary below the 41% threshold?

 

[grahamo]

This is possible.
It's based on your Gross Taxable Salary, which includes reductions for pension contributions.

Do your pension contributions bring your Gross Taxable Salary below the 41% threshold?

I pay about 60 euro a week into a pension fund. I'm presuming this is what keeps me in the 20% paye band

 

[shane7321]

Assuming you are solely a PAYE worker, i.e not required to submit a Form 11/ Form 12 on an annual basis the idea of owing the tax man money is extremely unlikely. You'll find that in 90% of cases the taxman (!!!) comes out with the profit. Are you the only person working in the family?